Collision Coverage: What It Is and Who Needs It

Collision coverage pays to repair or replace your vehicle when you hit another car, object, or roll over—regardless of who's at fault. It's the only coverage that protects your car's value after an at-fault accident, but it becomes expensive to carry once your vehicle's value drops below a certain threshold.

Updated April 2026

What Is Collision Coverage Insurance?

How Much Does Collision Coverage Insurance Cost?

  • Your vehicle's value—higher-value cars cost more to insure because the maximum payout is higher, while older vehicles with values below $3,000 rarely justify the premium cost.
  • Your deductible choice—selecting a $1,000 deductible instead of $500 can reduce your collision premium by 15% to 30%, but means you pay more out of pocket per claim.
  • Your driving record—each at-fault accident typically increases collision premiums by 20% to 50% for three to five years, and accumulated points from moving violations add another 10% to 25% depending on severity.
  • Your location—urban areas with higher collision frequency and repair costs see premiums 30% to 60% above rural rates, and states with no-fault laws often have elevated collision costs.
  • Your claims history—filing multiple small collision claims can raise your rates more than one large claim, and some insurers surcharge collision coverage specifically after a pattern of at-fault incidents.
  • Your credit-based insurance score—in states where it's permitted, drivers with lower scores pay 25% to 80% more for collision coverage even with identical driving records.

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Who Needs Collision Coverage Insurance?

Related Coverage Types

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